The company will focus on fresh products this year to boost margins, Sunit Shangle, CFO, Kwality, told CNBC-TV18.
The company’s bottomline last year was affected by high taxes and interest charges.Kwality will be launching new products in the next two-three months, Shangle said. The aim is to increase sales of new as well as old value added products, he added.
Shangle said he expected the company's margins to improve 50-60 basis points this year, while growth in topline was expected to be around the same level last year.
“Depending on the acceptability and the competitor, who have been able to sell these products, we expect the margins should increase by another 0.5 to 0.6 percent next year,” he said.
Below is the transcript of Sunit Shangle\\'s interview with Reema Tendulkar on CNBC-TV18.
Q: When I look at your full year numbers, your sales are up close to around 17 percent, your margins are largely flat at about 6 percent, but considering the company has such aggressive plans for the next few years, can you tell us how FY16 numbers are likely to look like? What could be the expected growth?A: During this year, we have put a lot of emphasis on our fresh products. Though that has not reflected in current year figures, it has increased by almost 30 percent during the year. This is where our focus would be. To increase our sales of fresh products and certain value added products that we will be launching in next two to three months time. Probably, the growth in topline would be in line with this growth then. We are looking at a much better bottomline next year.Q: When you say growth in topline would be similar to what you clocked in FY15, what would be the numbers and even on the margins, what can be the anticipated improvement?A: As we are launching these products for the first time, it is difficult to understand what would be the market acceptance of these products. But, depending on the acceptability and the competitor, who have been able to sell these products, we expect the margins should increase by another 0.5 to 0.6 percent next year.
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